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Feds to spend $90M on scrapping clunker cars

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The Canadian Press

Date: Tuesday Apr. 1, 2008 5:23 PM ET

OTTAWA — The federal government has quietly given the green light to a national program offering drivers incentives get older, polluting vehicles off the roads.

Environment Canada's annual planning report, released this week, earmarks $90 million over the next three years for a so-called vehicle "scrappage'' program.

The department has mulled the prospect of starting a national program since last year's budget set aside federal money for two years' worth of scrapping initiatives.

But aside from yearly spending estimates, the planning report yields few details about the new program.

It's not known, for instance, how the national program will work with the patchwork of regional scrapping groups that now receive federal funding.

Seven groups across the country get money from Ottawa to offer incentives -- ranging from rebates on new vehicles to free transit passes and charitable receipts -- in exchange for older vehicles.

The groups then turn the rusty clunkers over to scrap yards, which crush and recycle them according to provincial guidelines.

At least three of these groups say Environment Canada hasn't told them how -- or if -- they figure into the government's plans.

"We're just waiting for the announcement,'' said Margaret Bernhardt-Lowdon, director of health initiatives for the Manitoba Lung Association, which runs a Winnipeg-based scrapping program called Bye Bye Beaters.

"I'm kind of in the dark ... I'm certainly looking forward to hearing what they have to say, though.''

Bye Bye Beaters, Halifax-based Steer Clean and the national Car Heaven program say they were unaware the department had set aside money for the federal scrapping program.

"That sounds great, but to whom, and where, and why, and what?'' said Car Heaven's program manager, Fatima Dharsee, referring to the new program.

The department passed queries to Environment Minister John Baird's office, which offered no details about the national program.

"We remain committed to implementing an effective vehicle scrappage program. When we have something to announce, we will announce it,'' Baird spokesman Eric Richer wrote in an e-mail.

Environment Canada consulted with environmental groups, regional scrapping organizations and other stakeholders last year to explore the possibility of starting a national program.

"All I know is they want to have one program available to all Canadians. Something very big and accessible,'' Dharsee said.

The department e-mailed the regional outfits in January letting them know Baird was poised to announce the program.

"We anticipate that minister Baird will make an announcement about the new program within the next few weeks,'' said the Jan. 21, 2008 e-mail, obtained by The Canadian Press.

But more than two months later the department has yet to make that announcement.

The government estimates five million vehicles from 1995 or earlier -- predating today's tougher emissions standards -- were on the roads last year.

These older vehicles make up just a fraction of the estimated 18 million vehicles in Canada, but they account for up to two-thirds of the pollution that causes smog.

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